Home  »  Company  »  Martin Burn Ltd.  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Martin Burn Ltd. Company

Sep 30, 2014

BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, except stated otherwise, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standard) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956, and Companies Act, 2013 (as applicable).

The financial statements have been prepared and presented as per the requirement of Revised Schedule VI as notified under Companies Act, 1956.

USE OF ESTIMATES

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialsed.

FIXED ASSETS

1. Fixed assets are stated at cost of acquisition inclusive of taxes, freight, borrowing cost and other incidental expenses related to acquisition / installation except in case of revaluation of such assets where it is stated at the value determined on revaluation.

2. Fixed assets given on lease are stated at cost less accumulated depreciation.

3. Assets acquired under Lease Finance are recognized at lower of fair value or present value of minimum lease payments.

DEPRECIATION AND AMORTISATION

1. Depreciation on fixed assets including revalued assets is provided on "Written Down Value Method" at the rates, specified in Schedule XIV of the Companies Act, 1956. Additional depreciation for the period attributable to the revalued assets is transferred to the credit of Profit and Loss Account by debiting Fixed Assets Revaluation Reserve.

2. Depreciation on assets given on lease is provided over the ''Primary Lease Period'' on the basis of internal rate of return implicit in the lease or on written down value method at the rates specified in schedule XIV of the Companies Act, 1956, whichever is higher.

3. Leasehold land is amortized over the period of the lease in equal instalments. INVESTMENTS

1. (a) Current Investments (quoted) are carried at cost / fair market value, computed category wise. (b) Current Investments (unquoted) are carried at cost.

2. Long Term Investments are stated at cost.

INVENTORIES

Inventories are valued as under:

Work-in-progress - At cost or cost plus profit, where appropriate, depending upon the stage of completion and / or as per the terms of the contract. Cost includes direct material, cost of labour and other general administrative expenses.

TAXATION

Income tax expense comprises of Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year in accordance with the Income Tax Act, 1961. The Deferred Tax Assets and Deferred Tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized only if there is a virtual certainity of its realization, supported by convincing evidence. Deferred Tax Assets on account of other timing differences are recognised only to the extent there is a reasonable certainity that the assets can be realized in future.

REVENUE RECOGNITION

i) The company is mainly engaged in construction/ development of properties- some on behalf of others as developer / contractor and some on own account for eventual sale. Profit on construction / development of properties on behalf of others is accounted for according to the stage of completion and in case of properties developed on own account, only on handing over possession.

ii) Other revenue is recognized on completion of sale of assets and rendering of services.

iii) Lease rentals are recognized as income throughout the period on accrual basis as per lease agreement.

iv) Dividend income is recognized on receipt basis.

v) Interest on loans / advances is normally recognized on accrual basis. In case of default, the same is recognized on receipt basis.

vi) Rental income from tenants is recognized on receipt basis.

RETIREMENT BENEFITS

i) Gratuity is provided in the books of accounts on accrual basis based on actuarial valuation.

ii) Leave encashment liability is provided in the books of accounts on accrual basis based on actuarial valuation.

BORROWING COST

Borrowing cost attributable to the acquisition or construction of qualifying assets are included in cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its sale / intended use. All other borrowing costs are recognized as an expense in the period these are incurred.

CONTINGENT LIABILITY

Full disclosure is made in the accounts of any contingent liability. Provision for the same is however made when such liability crystallizes.


Jun 30, 2013

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the accounting standards specified by the Institute of Chartered Accountants of India.

ACCOUNTING CONVENTION

The financial statements are prepared in accordance with historical cost convention except for Revalued Fixed Assets.

FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of taxes, freight and other incidental expenses related to acquisition / installation except in case of revaluation of such assets where it is stated at revalued amount.

Fixed assets given on lease are stated at cost less accumulated depreciation.

DEPRECIATION

Depreciation on fixed assets including revalued assets is provided on "Written Down Value Method" for 15 months before taking the same into 12 months and 3 months at the rates, specified in Schedule XIV of the Companies Act, 1956. Additional depreciation for the period attributable to the revalued assets is transferred to the credit of Profit and Loss Account by debiting Fixed Assets Revaluation Reserve.

Leasehold land is not amortized over the life of the respective lease where these are expected to be renewed for further long-term period on their expiry.

Depreciation on assets given on lease is provided over the ''Primary Lease Period'' on the basis of internal rate of return implicit in the lease or on written down value method at the rates specified in schedule XIV of the Companies Act, 1956, whichever is higher.

INVESTMENTS

1. (a) Current Investments (quoted) are carried at cost / fair market value, computed category wise. (b) Current Investments (unquoted) are carried at cost.

2. Long Term Investments are stated at cost. INVENTORIES

Inventories are valued as under:

i) Work-in-Progress - At cost or cost plus profit, where appropriate, depending upon the stage of completion and / or as per the terms of the contract. Cost includes direct material, cost of labour and other general administrative expenses.

TAXES ON INCOME

Income tax expense comprises Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred Tax Assets and Deferred Tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred Tax Assets on accounts of other timing differences are recognised only to the extent there is a reasonable certainty that the assets can be realized in future.

RETIREMENT BENEFITS

i) Gratuity is provided in the books of accounts on accrual basis based on actuarial valuation.

ii) Leave encashment liability is provided in the books of accounts on accrual basis based on actuarial valuation.

REVENUE RECOGNITION

i) The company is mainly engaged in construction/ development of properties- some on behalf of others as developer / contractor and some on own account for eventual sale. Profit on construction / development of properties on behalf of others is accounted for according to the stage of completion and in case of properties developed on own account, only on handing over possession.

ii) Other revenue is recognized on completion of sale of assets and rendering of services.

iii) Lease rentals are recognized as income throughout the period on accrual basis as per lease agreement.

iv) Dividend income is recognized on receipt basis.

v) Interest on loans / advances is normally recognized on accrual basis. In case of default the same is recognized on receipt basis.

vi) Rental income from tenants is recognized on receipt basis.

BORROWING COST

Borrowing cost attributable to the acquisition or construction of qualifying assets are included in cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its sale / intended use. All other borrowing costs are charged to revenue.

CONTINGENT LIABILITY

Full disclosure is made in the accounts of any contingent liability. Provision for the same is however made when such liability crystallizes.


Mar 31, 2012

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the accounting standards specified by the Institute of Chartered Accountants of India.

ACCOUNTING CONVENTION

The financial statements are prepared in accordance with historical cost convention except for Revalued Fixed Assets.

FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of taxes, freight and other incidental expenses related to acquisition /installation except in case of revaluation of such assets where it is stated at revalued amount.

Fixed assets given on lease are stated at cost less accumulated depreciation.

DEPRECIATION

Depreciation on fixed assets including revalued assets is provided on "Written Down Value Method" at the rates, which are in conformity with the requirements of the Companies Act, 1956. Additional depreciation for the year attributable to the revalued assets is transferred to the credit of Profit and Loss Account by debiting Fixed Assets Revaluation Reserve.

Leasehold land is not amortized over the life of the respective lease where these are expected to be renewed for further long-term period on their expiry.

Depreciation on assets given on lease is provided over the 'Primary Lease Period' on the basis of internal rate of return implicit in the lease or on written down value method at the rates specified in schedule XIV of the Companies Act, 1956, whichever is higher.

INVESTMENTS

1. (a) Current Investments (quoted) are carried at cost and quoted/fair value, computed category wise. (b) Current Investments (unquoted) are carried at cost.

2. Long Term Investments are stated at cost INVENTORIES

Inventories are valued as under:

i) Work-in-progress - At cost or cost plus profit where appropriate depending upon the stage of completion and/or as per the terms of the contract. Cost includes direct material, cost of labour and include other general administrative expenses.

TAXES ON INCOME

Provision for Current tax is made on the taxable income for the year after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent of reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year to reassess realization/liabilities.

RETIREMENT BENEFITS

i) Gratuity is provided in the books of accounts on accrual basis based on actuarial valuation.

ii) Leave encashment liability is provided in the books of accounts on accrual basis based on actuarial valuation.

REVENUE RECOGNITION

i) The company is mainly engaged in construction/development of properties- some on behalf of others as developer/ contractor and some on own account for eventual sale. Profit on construction/development of properties on behalf of others is accounted for according to the stage of completion and in case of properties developed on own account, only on handing over possession.

ii) Other revenue is recognized on completion of sale of assets and rendering of services.

iii) Lease rentals are recognized as income throughout the period on accrual basis as per lease agreement.

iv) Dividend income is recognized on receipt basis.

v) Interest on loans/advances is normally recognized on accrual basis. In case of default, the same is recognized as income on receipt basis.

BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are included in cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its sale/intended use. All other borrowing costs are charged to revenue.

CONTINGENT LIABILITY

Full disclosure is made in the accounts of any contingent liability. Provision for the same is however made when such liability crystallizes.


Mar 31, 2010

Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with the accounting standards specified by the Institute of Chartered Accountants of India.

Accounting Convention

The financial statements are prepared in accordance with historical cost convention except for such fixed assets, which are revalued.

Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of taxes, freight and other incidental expenses related to acquisition/ installation except in case of revaluation of such assets where it is stated at revalued amount.

Fixed Assets given on lease are stated at cost less accumulated depreciation.

Depreciation

Depreciation on fixed assets including revalued assets is provided on "Written Down Value Method" at the rates, which are in conformity with the requirements of the Companies Act, 1956. Additional depreciation for the year attributable to the revalued assets is transferred to the credit of Profit & Loss Account by debiting fixed assets revaluation reserve.

Leasehold Land is not amortized over the life of the respective lease where these are expected to be renewed for further long- term period on their expiry.

Depreciation on assets given on lease is provided over the Primary Lease Period on the basis of internal rate of return implicit in the lease or on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956, whichever is higher.

Investments

Investments are valued at or under cost. Dividends are accounted for on receipt basis.

Inventories

Inventories are valued as under:

i) Finished construction (Unsold) - At lower of cost or net realizable value.

ii) Work-in-Progress - At cost or cost plus profit where appropriate depending upon the stage of completion and/or as per the terms of the contract. Cost includes direct material, cost of labour and include other general administrative expenses.

Taxes on Income

Provision for Current Tax is made on the taxable income for the year in terms of the provisions of the Income Tax Act, 1961.

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

The Deferred Tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent of reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year to reassess realization/liabilities.

Retirement Benefits

i) Gratuity is provided in the books of accounts on accrual basis based on actuarial valuation.

ii) Leave Encashment Liability is provided in the books of accounts on accrual basis based on actuarial valuation.

Revenue Recognition

i) The company is mainly engaged in construction/development of properties - some on behalf of others as developer and some on own account for eventual sale. Profit on construction/development of properties on behalf of others is accounted for according to the stage of completion and in case of properties on own account, only when the registration is made.

ii) Other revenue is recognized on completion of sale of goods and rendering of services.

iii) Lease rentals are recognized as income throughout the period on accrual basis as per lease agreement.

Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are included in cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its sale/intended use. All other borrowing costs are charged to revenue.

Contingent Liability

Full disclosure is made in the accounts of any contingent liability. Provision for the same is however made when such liability crystallizes.

Miscellaneous Expenditure

Miscellaneous Expenditure is written off over a period of 5 years.

 
Subscribe now to get personal finance updates in your inbox!